Chris Larsen, co-founder and CEO of Ripple, wrote an opinion piece for The Hill, where he argued that the United States is currently losing the „cold war technology“ to China. Why?
The United States vs. China
Basically, Ripple’s co-founder explains in his opinion article that, China’s digital currency leadership could be a „once-in-a-century opportunity“ to replace the U.S. dollar. However, that would imply that the yuan could become a global reserve currency.
Therefore, the clear dominance that China has achieved in terms of crypto-currency, Blockchain technology and finance, could be an important front in future battles between the two countries.
For those who don’t know, China has managed to advance by giant steps in the adoption of digital payments through giants like Alipay and WeChat. Meanwhile, the United States is stuck with Blockchain and crypto-currency technology.
However, the United States is not the only one in danger of China’s advances, also, crypto-currencies, especially Bitcoin. Whereas, according to the Center for Alternative Finance at Cambridge University, at least 65% of crypto coin mining occurs in China.
Therefore, Ripple’s co-founder is concerned that China could take advantage of the accumulation of hash power to meddle in transactions.
But Ripple’s co-founder writes that „unfortunately, the United States remains behind“ in technology. He argues that „America’s domestic digital payments are still catching up: cash and debit cards still dominate.
U.S. GDP in trouble, Bitcoin at its best
Bitcoin mining difficulty reaches new record
The difficulty of Bitcoin mining has increased to an all-time high after one adjustment. However, the news may not be pleasant for the smaller miners.
An important fact to keep in mind is that the difficulty of Bitcoin mining is adjusted approximately every two weeks. Therefore, when the blocks are mined too fast, or too slow, the difficulty is adjusted accordingly.
However, the increase led to the total difficulty of the Bitcoin network to an all-time record of 17.35 billion (T). But, according to BTC.com, estimates point to a new milestone for the Bitcoin Network for the next adjustment.
Research: $50 billion in crypt coins left China
BIS reports on the growth of CBDCs worldwide
As we all know, the birth of Bitcoin has caused several changes in the world. In particular, the emergence of CBDCs, or central bank digital currencies, is one of them.
Today, the Bank for International Settlements (BIS), the bank for the world’s central banks, issued a report on CBDCs.
The main finding is that most CBDCs have been originating in innovative countries and the aim of them is to offer a digital alternative to cash rather than a replacement.